Cramer tips hat to Allergan

A clinical technician holds a syringe and a vial of Allergan Botox, produced by Allergan.
Jason Alden | Bloomberg | Getty Images
A clinical technician holds a syringe and a vial of Allergan Botox, produced by Allergan.

The money making game all comes down to who is running a company. Good management trickles down to a good investment. That is why Jim Cramer knows that plenty of money can be made when there is a terrific CEO who insists on good value.

Sometimes that value is brought out by hard work. Sometimes by ingenuity, technology and inventiveness. Sometimes it is all of these things combined, plus strong bargaining power.

"With this $219 Actavis bid, Allergan's David Pyott has accomplished all of those things for shareholders," Cramer said.

On Monday Actavis announced it had agreed to pay $66 billion, or $219 a share, for Botox maker Allergan. This is a landmark price, considering it was just trading at $28 six years ago.

Cramer added that Pyott has done an amazing job putting some good things in the pipeline for Allergan to make it so attractive. He spent more money on research and development than any other pharmaceutical company, which has paid off in the case of Botox.

Allergan created new uses for the wonder drug—including a ground breaking migraine drug that cuts the amount of times people suffer from them, as well as putting a stop to overactive bladders.

Other companies also attempted to bid for Allergan; however Pyott stood his ground and insisted on the value of the company. Low bids came in from Valeant, the predatory drug company known for buying and stripping the research and development budget to bare bones. Another low bid also came in from Bill Ackman, the rough and tough hedge fund manager.

Actavis CEO Brent Saunders recently told "Mad Money" he was ready to do a deal and would be happy to combine forces with Allergan because he saw so many synergies between the two companies. Looks like Allergan was listening.

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In the end, Pyott reached a price that no other company could reach, because he kept his eyes on the prize and wouldn't settle for less.

"It's been a fabulous run, and Pyott deserves wall of fame like plaudits for what he has done for his shareholders during his amazing tenure at Allergan," Cramer said.

Hats off to Pyott, and all of the shareholders who stuck with him during this incredible run. What a lucrative journey it has been.

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